Enero Group (EGG) H2 2025 earnings summary

Executive summary

• Revenue and EBITDA grew in the Technology, Healthcare & Consumer (THC) Practice, with improved margins and strong H2 momentum despite a challenging start to the year and tech market conditions.

• OBMedia was divested on 30 June 2025, allowing management to focus on core agencies and positioning for future growth.

• Corporate costs were reduced in H2, supporting improved profitability and a robust net cash position of $27.5m.

Financial highlights

• Net revenue from continuing operations declined 3% year-over-year to $138.7m, impacted by macroeconomic and tech sector headwinds.

• EBITDA from continuing operations rose 2% to $14.1m, with margin up 0.5ppt to 10.2%.

• Adjusted net profit attributable to equity owners was $4.2m, flat year-over-year; statutory net loss after tax was $19.3m, including a $15.2m loss from discontinuing operations and $4.6m in restructuring costs.

• Dividend per share was 2.8 cents, down 44% from the prior year; final dividend of 1.3 cents per share, fully franked.

• Free cash flow was $8.8m, with cash conversion at 79% of EBITDA.

Outlook and guidance

• Ongoing focus on value creation through AI, automation, operational efficiency, and innovation to drive margin improvement and growth in FY26.

• Continued cost initiatives expected to deliver further savings in FY26.

• Final contingent consideration payment for ROI-DNA due in FY26 H1.

• Emphasis on differentiation and attracting top talent for long-term value.